Photo/Illutration A demonstration facility for CCS, a technology for capturing carbon dioxide and trapping it underground, in Tomakomai, Hokkaido (Asahi Shimbun file photo)

To achieve decarbonization by 2050, the CCS (carbon dioxide capture and storage) project bill, which for the first time defines operators’ rights and the regulatory framework for such projects, was outlined.

The technology involves separating and collecting carbon dioxide (CO2) from factories and other sources before it diffuses into the atmosphere, then injecting it underground more than 1,000 meters deep for storage.

The process is expected to be utilized at refineries and thermal power plants, which emit large amounts of CO2.

The outline states a permit system for exploratory drilling and storage operations will be created, and the operator will be responsible for compensation in the event of an accident or other incident, even if it was not intentional or due to negligence.

The economy ministry will submit the proposal to the current ordinary Diet session.

To achieve the central government’s goal of virtually zero emissions by 2050, the Kishida administration stressed that “the introduction of CCS is essential” in areas where decarbonization proves difficult.

The GX (green transformation) promotion strategy the Cabinet approved in July last year stated that the business environment would be prepared for the start of CCS projects by 2030.

The bill has two main components: establishing a licensing system for exploratory drilling and storage projects; and providing regulations for storage operators.

For the licensing system, the economy minister will designate areas where there are likely to be geological formations suitable for storage as “specified areas” and then will solicit operators.

Licensed operators will be granted prospecting and storage rights.

Holders of mining concessions under the Mining Law may operate with a permit in mining areas outside the specified area.

The regulations for storage operators include that the implementation plans for exploratory drilling and storage projects must be approved by the economy minister.

To check for any leakages from the stored CO2, operators will also be required to monitor reservoir temperatures and pressure levels.

Once the stored CO2 has stabilized, monitoring and other management tasks can be transferred to the Japan Organization for Metals and Energy Security (JOGMEC).

After the transfer, the operator will contribute the necessary funds.

The new regulations will also prohibit the refusal of CO2 storage requests without just cause and the “discriminatory treatment” of certain emitters, and will require a notification of fees.

Furthermore, compensation caused by exploratory drilling and storage projects will be based on “no-fault liability,” meaning the company will be liable in the event of an accident or other incident even if there is no evidence it was intentional or that it was a product of negligence from the standpoint of victim relief.

It is estimated that approximately 120 million to 240 million tons of CO2 must be annually buried to achieve the government’s 2050 decarbonization goal.

The ministry and others began demonstration experiments in Tomakomai, Hokkaido, in fiscal 2012.

The JOGMEC selected five model projects in Japan and two overseas projects in June last year.

The government will also submit a bill to promote a hydrogen society that designates ammonia, synthetic fuels, and synthetic methane, which emit less CO2, as, for example, “low-carbon hydrogen” and promote their use.

(This article was written by Aki Fukuyama and Ryo Aibara.)

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